Mixed reception for 130/30

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130/30 strategies have endured a rollercoaster ride since they first appeared on the investment landscape in the mid-2000s. They were initially greeted with a great deal of interest from institutional investors and benefited from significant asset inflows from the outset.

Providers were able to raise billions of dollars in capital for these products despite their limited track record and industry watchers were moved to make bold predictions about the future for 130/30 strategies. In 2007 Merrill